This article first appeared in The Edge Financial Daily, on July 21, 2016.

KUALA LUMPUR: Following the cessation of the Berantai risk service contract (RSC) with the previous contractors, national oil company Petroliam Nasional Bhd (Petronas) has appointed its wholly-owned subsidiary, Vestigo Petroleum Sdn Bhd, to continue the operations and maintenance of the field on its behalf.

“The appointment of Vestigo is in line with Petronas’ effort to extend the economic life of the field and maximise the long-term value of the asset,” said Petronas in a statement yesterday.

Vestigo specialises in development and production of small and marginal fields, and currently operates the Tembikai field under the Tembikai-Chenang Cluster Small Field RSC, which achieved first oil in June 2015.

It was reported on July 11 that Petronas was taking back control of the Berantai gas field, which is located off Terengganu, from UK oil service provider Petrofac Energy Developments Sdn Bhd and SapuraKencana Petroleum Bhd after five years.

In a statement issued then, Petronas said the cessation of the RSC would allow it to minimise the project’s long-term value erosion, and optimise development and production activities in Malaysia, in line with its efforts to reduce costs and up the efficiency of its operations.

According to filings by London-listed Petrofac Ltd and Bursa Malaysia’s Main Market-listed SapuraKencana, a mutual agreement was reached to terminate the Berantai RSC, and that Petronas would reimburse all outstanding capital and operational expenditures to the contractors by June next year.

The cessation of the RSC with the two companies will take effect on Sept 30.

The Berantai field produced first gas in October 2012.

The field comprises a wellhead platform connected to a floating production storage and offloading (FPSO) vessel, the Berantai FPSO, which processes and exports gas to the neighbouring Angsi field via a 30km subsea pipeline before being exported onshore, said Petronas.